Ram Posted June 23, 2010 Posted June 23, 2010 The thing is, while the govt. should do everything it can to encourage home-ownership (obviously, every family deserves the opportunity of owning and living in the security and warmth of their own home), they should atleast try, in a limited sense, to deter repeat home-owners. Its not the first time home-owners who making real-estate values skyrocket, but the 2nd, 3rd and Nth time home owners who are contributing to this manic boom. Maybe the tactic should be to make it less and less appealing to own a home, as you begin to buy more and more homes. Maybe they should apply differential tax-rates and special value added taxes for repeat home-owners. Maybe they can give tax credits to encourage home-ownership in outlying and rural areas. But simply put, the status quo that is being fueled by the greed and wealth of the top 10% of the population will lead to collective disaster for the rest 90%. If someone’s already a crorepathi, it doesn’t really a siginificant difference to him if his net value drops from 5 crores to 2 crores. He still has enough money to put food on his family’s plate and live a comfortable life. But if the average middle class single home owner sees his home value drop from 40 lakhs to 15 lakhs, then it could have disastrous consequences for him. There are many families out there who plan to finance their kids higher education and their daughters’ wedding by the selling their home and use part of the money for the expenses and the rest as savings for their older age. A real-estate crash would be a debilitating blow to their long-term plans.
kabira Posted June 24, 2010 Posted June 24, 2010 In India, the book value of property is most of the time 50% of the market value. That means if you are buying 50 Lakh property, You need 25 Lakh of Black Money (cash). And rest you would depend on bank loan. There is lot of black money involved in Real Estate market.
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